In the early part of the 1960s, South Korea was experiencing a serious trade deficit. The nation's domestic market was not strong enough to support domestic businesses. After WWII, when Korea was divided by the Allies, all the natural resources were in the territory north of the 38th parallel. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. In the year 1953, the nation was finally at peace, and South Korea began an intensive drive towards economic development, quickly transforming from an agrarian economy to a centrally planned, industrial economy. Determined to never again experience hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong during this period of economic emergence. Daewoo, which means "Great Universe," was established during the year 1967.
Even though the corporation's initial share capital was only $18,000, Kim as well as his partners believed that the business would be successful. This proved true, and Daewoo went on to become amongst the nation's largest chaebols, or businesses. The business had operations in a wide range of industries, including building ships, motor vehicles, aerospace, heavy industry, consumer electronics, telecommunications, trading and financial services. Exports were promoted a lot and a network of offices was established in different nations. Ultimately, there were over 100 branches all over the world. The corporation at its peak sold thousands of various products in more than 130 nations. By the latter part of the 1990s the business had become significantly overextended. The corporation was seriously in debt, and Kim was accused of corporate wrong doing. The South Korean government ordered the company dismantled during 1999 and other businesses purchased most of Daewoo's holdings.